Tag Archives: Freddie Mac

After a month of weekly increases, mortgage rates followed Treasury bond yields down this week. Freddie Mac reported that the 30-year fixed averaged 3.59 percent (0.6 point) for the week ending August 30, down from 3.66 percent in the previous week's survey. Bankrate's survey showed that the 30-year fixed average took a substantial tumble, falling to 3.80 percent from 3.91 percent before.

Homeowners and officials in held a town meeting Thursday in Akron, Ohio, to discuss the impact of the housing crisis on their communities. The event, called #MyHomeMyVote, was designed to put the housing crisis and voters' concerns at the forefront of the wave of issues surrounding this year's election season.

Massachusetts attorney general Martha Coakley issued a letter Thursday to Fannie Mae, Freddie Mac, and their conservator, FHFA, reminding the agency and mortgage giants that they are required to offer reasonable loan modifications in the state and urging flexibility on principal reductions. In a letter addressed to FHFA acting director Edward DeMarco, Coakley outlines a law recently passed in Massachusetts that requires creditors to ""make commercially reasonable efforts to achieve a commercially reasonable loan modification.""

Treasury announced Friday a set of modifications to agreements between itself and FHFA designed to help speed up the wind down of Fannie Mae and Freddie Mac. In addition to reducing the GSEs' mortgage portfolios in a more timely manner, these modifications are designed to ensure that each firm's earnings benefit taxpayers and help reform the housing finance market.

Freddie Mac released its Primary Mortgage Market Survey (PMMS) Thursday, showing that the 30-year fixed-rate mortgage (FRM) inched up to 3.62 percent (0.6 point) for the week ending August 16. The 30-year fixed averaged 3.59 percent the previous week. The 15-year FRM also increased, rising to 2.88 percent (0.6 point) from 2.84 percent previously.

Analysts with Fitch Ratings found a lot to like about the recent second-quarter earnings for Fannie Mae and Freddie Mac. The consensus: Stronger mortgage portfolios mean less pressure on Congress and the next administration, giving Fannie and Freddie some elbow-room as their legacy portfolios shrink.

For borrowers who refinanced in the second quarter, shorter fixed-rate mortgages dominated consumer preferences. Among those who refinanced in Q2, more than 95 percent opted for fixed-rate loans, according to the Freddie Mac Quarterly Product Transition Report.

The GSE released its U.S. Economic and Housing Market Outlook for August on Wednesday, examining recent trends in home price indices and speculating on the impact of shadow inventory on home prices. While prices have shown positive growth in many states through this year, concerns about shadow inventory-the stock of single-family loans that are seriously delinquent-- have some experts worried about prices taking another tumble.

Strong employment reports boosted mortgage rates back up for the second week in a row, Freddie Mac reported Thursday. The GSE's Primary Mortgage Market Survey show the 30-year fixed averaging 3.59 percent (0.6 point) for the week ending August 9, an increase from 3.55 percent the previous week. The 15-year fixed also posted gains, averaging 2.84 percent (0.6 point) for the week, up from 2.83 percent a week ago.

Things are looking up at Freddie Mac. As of the end of the second quarter, Freddie Mac had a positive net worth and reported it will not require a draw from Treasury this quarter. At the end of June, the GSE had $1.1 billion in net worth. The new net worth is the result of $2.9 billion in comprehensive income during the second quarter. About $1.8 billion was paid to Treasury as dividends on 10 percent preferred stock. Freddie Mac's net income of $3.0 billion in the second quarter is a jump from the $577 million recorded in the first quarter.